Stupid Stock Move of the Day! Apple down?June 1, 2012: 2:36 PM ET
Sure, there's no good reason for stocks to be up today. But don't you think Apple (AAPL) has earned the benefit of the doubt? It was not hurt during the Great Recession. And so far, this is not looking like a downturn that will be worse than four years ago.
What's not to love about Apple? The stock is cheap. It trades at less than 12 times fiscal 2012 earnings estimates. And profits are expected to increase by nearly 70% this year. The balance sheet is as pristine as can be? Even if Greece leaves the euro and financial chaos ensues, you can still probably bank on Apple enthusiasts camping outside stores around the world for the next iPhone -- whenever it comes out.
Heck, the company is about to become a great play for income-starved investors too. Apple will soon begin paying a quarterly dividend of $2.65 a share. That works out to an annual yield of 1.9%. That's higher than the puny 1.47% yield you get from a 10-year U.S. Treasury. Why keep flocking to bonds? Apple looks like a much better safe haven.